0.750
%
Neutral
76
mm boe
0
%
Exploration activities in Jamaica have occurred in two phases. The first, between 1955 and 1973, was undertaken by private companies, while the second (1978 - 1982) was undertaken by the national oil company, the Petroleum Corporation of Jamaica ("PCJ"). Between 1955 and 1973, seven exploratory wells were drilled, six of which were onshore. Immediately following the establishment of the PCJ in 1979, the momentum of activity increased with the drilling of an additional three wells onshore and one offshore between 1980 and 1981. With advancements in the geological and geophysical sciences over the past two decades, Jamaica is being viewed as a frontier region and is likely to benefit from this reawakening of interest in frontier provinces inside the Caribbean. While limited in development to date, the presence of United O&G remains a high spot. However, given the limited size of the upstream sector, the country has difficulty in attracting investment.
March 6, 2024
Caribbean
mm bbl
bcf
Caribbean, island in the Caribbean Sea, south of Cuba.
Multiple (PSC/Concession)
There has been little exploration or production in the country, has occurred in the country
The Jamaican economy grew by 5.2% in 2022, clawing back the lost output associated with the COVID-19 shock a year ahead of projections. This recovery was particularly impressive, as following previous shocks the Jamaican economy plunged into deeper recession. While the entire economy registered growth, tourism continued to lead the resurgence in output. The economic expansion had a positive impact on revenues, allowing the government to maintain its fiscal consolidation program, including a reduction in the debt to GDP ratio to below pre-pandemic levels. The country has now shed almost 60%age points from its debt to GDP ratio in less than a decade and is on track to reach its target of 60% of GDP by 2028. The fiscal space created by debt reduction allowed the government to execute public sector wage reforms. Inflation ended 2022 at near to 10% but began trending lower in 2023. Despite the economic progress, Jamaica’s high crime rate, corruption, and comparatively high taxes have stymied investment prospects. The country’s Transparency International corruption perception ranking improved marginally from 70 (2021) to 69 (2022) out of 180 countries. Despite laws that prescribe criminal penalties for corrupt acts by officials, there were still reports of corruption at some ministries and agencies.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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